PowerFacts

Group of Pennsylvania Consumers Voices Support for Competitive Electricity Supplies

A group of 12 large electricity consumers in Pennsylvania sent a letter to Gov. Edward Rendell on October 20 warning against calls for a rate cap extension in the state as well as the dangers of an energy producer tax. These consumers, representing 1,387 facilities, 97,941 employees and over $125 million in annual electricity costs, asked the governor to allow independently overseen wholesale and retail electricity markets to continue to grow.

The consumers were writing in response to recent passage of Pennsylvania's HB 2200, which was signed into law last week by Governor Rendell as Act 129, and calls for modifications in the state's energy markets. Importantly, the new law still relies on competitive procurement of electricity supplies for non-switching utility customers. Many of the details of the law's implementation will be discussed in proceedings at the Pennsylvania Public Utility Commission.

• "As business people in Pennsylvania, we compete in a free market. We understand that competition results in improved products and services at competitive prices, which in turn results in savings that can be reinvested in our businesses. Rate freezes mask market signals that are essential for making wise usage decisions and for facilitating consumer demand response. Those savings allow us to continue to deliver low priced products to our customers. Our businesses, our 97,941 Pennsylvania employees, and our customers all deserve the opportunity to continue to benefit from the choices derived from a well-designed, competitive electricity market."


• "We believe that regional competitive wholesale markets for electricity with independent oversight, as we have in the PJM marketplace, provide access to generation at the lowest available cost, promote transparency and reliability, enhance the nation's transmission infrastructure, and provide price signals that promote sound investment decisions regarding generation (using renewable energy as well as more traditional sources), transmission, demand response, and energy efficiency."


• "A well designed, competitive electricity market in Pennsylvania has supported the development of new clean generation resources in Pennsylvania like wind power which has increased from zero to almost 300 MW since 1997 and PJM has seen consumer demand response increase six-fold since 2000."


The complete letter to Governor Rendell can be found at the COMPETE Coalition website.
http://www.competecoalition.com/files/Rendell%20Letter1008.pdf

CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660

EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.